The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for February 2026, detailing a period of significant market activity influenced by geopolitical tensions, macroeconomic changes and shifting supply-demand dynamics within the global natural rubber sector.

As per the report, global natural rubber production for 2026 is forecast to reach 15.324 million tonnes, a 2.2 percent increase from the 14.996 million tonnes recorded in 2025. February output alone is projected at 994,000 tonnes, marking a 3.4 percent year-on-year rise due to favourable weather and higher rubber prices. Despite this overall growth, production trends vary among member nations. While Thailand is expected to remain the top producer, Indonesia and Vietnam face short-term constraints from structural and agronomic issues. Meanwhile, Malaysia is advancing efforts to restore abandoned plantations, with the Rubber Production Incentive activated in Sarawak and Sabah and the Malaysian Rubber Board targeting the rehabilitation of 4,137 hectares of idle land in 2026.

Physical and futures markets saw notable price increases across major grades in February. In Kuala Lumpur, SMR-20 averaged USD 2.01 per kilogramme, a 5.13 percent monthly gain, while STR-20 in Bangkok rose 5.12 percent to USD 2.11 per kilogramme. Sheet rubber grades also strengthened, with RSS-3 increasing 7.84 percent to USD 2.35 per kilogramme and RSS-4 in Kottayam surging 10.38 percent to USD 2.34 per kilogramme. Centrifuged latex in Kuala Lumpur closed the month at USD 1.61 per kilogramme. Futures mirrored this firming trend, as the Shanghai Futures Exchange May 2026 contract averaged roughly 16,508 CNY (approximately USD 2,388) per tonne and the SGX contract averaged USD 1.92 per kilogramme, supported by strong demand and tightening supply expectations ahead of the seasonal low-yield period from February to May.

Crude oil volatility added further complexity, with Brent averaging USD 70.89 per barrel in February – up 6.43 percent from January – before spiking to approximately USD 104 per barrel in early March following military actions in the Middle East and the closure of the Strait of Hormuz, a conduit for nearly 20 percent of global oil supply. This has introduced a risk premium with implications for synthetic rubber competitiveness and natural rubber demand. Currency shifts also play a role, as the Malaysian Ringgit appreciated modestly to 3.89 MYR per USD and the Thai Baht strengthened to around 31.08 THB per USD by late February, affecting trade competitiveness. Looking ahead, rising automotive production, especially of new energy vehicles in China, India and Southeast Asia, is expected to sustain demand and support prices. However, risks persist from US-China trade tensions, Middle East geopolitical instability, weather uncertainties during the low-yield season and currency fluctuations tied to US monetary policy, all of which could disrupt supply chains and export revenues.

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Shin-Etsu Chemical has announced a sweeping price revision for its entire range of silicone products, effective for all shipments from 1 May 2026. The adjustment applies to every product handled by the company’s Silicone Division, with increases set at a minimum of 10 percent. Actual revision rates will vary depending on the specific product category.

The decision follows recent developments in the Middle East, which have triggered sharp surges in crude oil and naphtha prices. This has led to a steep rise in the cost of oil-derived raw materials. Additionally, Shin-Etsu Chemical is confronting higher expenses related to manufacturing energy, product containers, packaging materials and logistics, all of which have contributed to the need for a price correction.

Despite exhausting all possible internal measures to reduce manufacturing costs, the company concluded that these efforts alone cannot absorb the mounting cost pressures. Shin-Etsu Chemical is now committed to fully communicating the situation to its product users and securing their understanding of the necessary selling price revisions.

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The Association of Natural Rubber Producing Countries (ANRPC) recently participated in a Hari Raya Open House event. The gathering was organised by Malaysia’s Rubber Development Division, which falls under the Ministry of Plantation and Commodities. This occasion allowed the ANRPC to connect with important figures within the natural rubber sector. By bringing together various industry partners, the open house successfully created an atmosphere of goodwill and strengthened existing relationships.

The ANRPC has conveyed its genuine gratitude to the event’s hosts for their warm reception and thoughtful organisation. The association acknowledged the importance of uniting stakeholders in such a meaningful celebration, which helps reinforce shared goals and collaborative spirit across the sector.

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ARLANXEO has officially opened its Innovation Center Asia (ICA) in Changzhou, China, transforming the former Regional Technical Center into a full-fledged Asian innovation hub. This upgrade significantly strengthens the company’s global research and development network, with a clear focus on serving the local Chinese market as well as broader regional needs. The expansion reflects ARLANXEO’s commitment to advancing performance elastomers through targeted regional investment.

Now boasting larger facilities, an expanded team and new laboratory equipment, the Innovation Center Asia is equipped to handle rubber compounding, processing, physical testing, chemical analysis, battery prototyping and more. A dedicated chemistry lab has been added to support the nearby HNBR plant and global HNBR research activities. Located alongside ARLANXEO’s EPDM and HNBR plants in Changzhou, the centre fosters close customer collaboration to address evolving market needs. It also works in tandem with the company’s Dormagen, Germany, innovation centre, jointly developing new testing methods, exploring advanced technologies and delivering innovative product solutions worldwide.

The inauguration event featured speeches from Herman Dikland, ARLANXEO’s Chief Technology and Sustainability Officer, and Hong Sun, Managing Director of ARLANXEO China. Joining them at the ceremony were company representatives, key customers, local government officials and academic partners from various universities. Their presence underscored the collaborative spirit and shared interest in driving innovation forward.

Herman Dikland, Chief Technology and Sustainability Officer, ARLANXEO, said, “Innovation is a core driver of ARLANXEO’s sustainable growth, and China plays an important role in our global innovation ecosystem. This state-of-the-art laboratory facility puts us in an excellent position to advance our R&D capabilities and reinforce our market position. We look forward to driving frontier innovation together with our passionate and creative China team while bringing China-based innovation into solutions for global markets.”

Hong Sun, Managing Director, ARLANXEO China, said, “The inauguration of the Innovation Center Asia reflects our commitment to supporting the rapid transformation of China’s rubber industry during the 15th Five-Year Plan period. With growing demand for advanced materials and customised formulations, the new centre will further strengthen our proximity to customers, enhance our agility in meeting market needs and better support the upgrading of the entire rubber industry.”

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ARLANXEO has strengthened its role in the synthetic rubber industry by expanding its marketing and sales agreement for EPDM rubber produced by Rabigh Refining & Petrochemical Company (PRC), a joint stock company formed under the laws of the Kingdom of Saudi Arabia. This new arrangement became effective in February 2026, granting ARLANXEO exclusive rights to market all EPDM grades coming from PRC’s facilities, which will continue to be sold under the Keltan KSA product name.

This extension of the Keltan KSA business highlights ARLANXEO’s dedicated commitment to the worldwide EPDM market. By combining the original Keltan line with the Keltan KSA portfolio, the company now offers customers a uniquely broad and comprehensive range of EPDM solutions, ensuring a more complete service across diverse applications.

John Sawaya, Chief Business Officer, ARLANXEO, said, “Through this expanded agreement, we are further enhancing ARLANXEO’s position as the global supplier for EPDM synthetic rubber.”

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